Most Common Mistakes in Customer Feedback Analysis

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May 31, 2023
* min read

Customer feedback analysis is a complicated process. It involves many actors and is constantly influenced by many internal and external factors. One misstep can make a big difference and prevent you from closing the customer feedback loop, so there is always space for improvement. 

In this article, we’ll discuss the most common mistakes businesses make when analyzing customer feedback. 

Ignoring Criticism

When we work hard on something, we don’t want to receive criticism. However, your critics are your biggest helpers in making your product better. People who are satisfied with your product will rarely feel inspired to express their opinion publicly. Critics, on the other hand, often feel the need to share their experience with as many people as possible. They also tend to go into more detail, making their feedback a valuable source of insights. If you ignore them and disregard criticism, you will be left with unresolved issues and an increased risk of customer churn. But if you take the time to communicate with them and make the requested changes, you can turn your passionate critics into loyal advocates. 

Overlooking Customer Segmentation

Few businesses have a homogenous customer base. Different people use your product for different purposes, which means they have a set of unique needs, preferences, and expectations. By identifying unique customer segments with a specific set of characteristics such as age, gender, income, and purchase behavior, you can adjust your strategy to better meet your customers’ needs, offer personalized solutions, and use more specific marketing messaging. For example, you may choose to highlight your product's affordability when marketing to students over social media but focus on its reliability and longevity in your newsletter targeted at an older segment. 

Analyzing an Unrepresentative Sample

A representative sample is essential for getting accurate results and reaching the right conclusions. Before you start the analysis, you need to make sure your sample includes customers with different demographics, geographic locations, and purchase behaviors. One way to ensure this is using a random sampling method that would lead to a diverse sample with a variety of experiences, expectations, and pain points. If your sample imitates your customer base, you can get a holistic understanding of your customers and identify areas of improvement you need to focus on. 

Disregarding Feedback Channels

Different customer segments use different channels to share their experience with your product. If you focus on specific channels and ignore others, your perception of your customers is not accurate. By analyzing multiple feedback sources, you can make sure you don’t miss any valuable feedback or unique perceptions. 

Encourage your users to give you feedback and offer multiple ways to do it. While it’s easier to analyze data from one source rather than several, Essense allows you to generate multi-source reports and analyze feedback from various sources at once. 

Failure To Track Changes Over Time

Customer preferences and expectations change over time, so customer feedback analysis should be strategic and systematic. Regularly monitoring customer feedback enables businesses to identify shifts in customer sentiment, emerging patterns, and changing needs. By constantly keeping track of customer data and analyzing changes, businesses can anticipate customers' needs and make proactive decisions. Whenever a shift occurs, it is important to analyze the context and any factors that may have caused it such as changes in the competitive market, seasonal changes, or new market trends. 

Neglecting Employee Feedback 

The voice of the employee is a valuable source of feedback that often gets overlooked. Employees who interact with customers regularly often have valuable insights into customer needs and pain points. Ignoring their feedback or suggestions for improvement is a mistake that may be stopping you from incorporating feedback and making lasting changes. 

If you’re not getting actionable internal feedback, you should also reconsider your feedback collection strategy. Make sure your team knows their feedback is always welcome, especially if it’s constructive criticism. By collecting employee feedback and acting on it, you can improve your processes and boost your team’s morale at the same time.

Forgetting the Silent Majority

Few customers will actually make time to provide feedback. The vast majority always stay silent, but those customers aren't less valuable than your outspoken ones. Silent customers also have their needs and expectations, and not considering them can result in a biased analysis that fails to capture your customer sentiment. To understand the unspoken needs of their customers, businesses can leverage sentiment analysis data and monitor customer behavior patterns. 

Lack of Actionable Insights

Sure, customer feedback is a gold mine of valuable information, but customers don’t communicate in insights and product suggestions. It is your responsibility as a business to set up a voice of the customer program that would organize data collection and analysis processes in a way that allows you to extract actionable insights from large amounts of unstructured data. 

To turn feedback into insights, businesses need to categorize feedback into themes, analyze the context of the feedback, prioritize it, and develop a plan on how to integrate it into the product roadmap. If you successfully close the feedback loop, you can significantly decrease your customer churn. 

Failing To Integrate Feedback 

Customer feedback is often confined within specific departments, such as customer support or marketing. Not sharing feedback across different teams prevents companies from getting a holistic understanding of the customer and their experience with the product. When feedback is integrated across departments, businesses can do a better job at identifying patterns, creating better solutions, and anticipating customers’ needs. By collaborating and sharing valuable insights, marketing, sales, and product teams can identify pain points in different parts of customer experience and improve overall satisfaction. 

Not Analyzing Qualitative Feedback

Collecting and analyzing quantitative data is essential for every business. Quantitative data provides objective numerical insights that are easy to analyze and incorporate. However, it lacks the context and depth offered by qualitative data. While qualitative data is less structured and harder to analyze, it can provide a true insight into the customers’ minds. By analyzing customer comments, reviews, emails, or support requests, businesses can get an understanding of the customers’ sentiment towards the brand and uncover the specific reasons behind it. 

Luckily, there are many AI tools and techniques that can automate qualitative data analysis, handle large amounts of data, and extract actionable insights. As an AI-powered customer feedback analysis tool, Essense offers its users advanced analytics tools, sentiment analysis, and data visualization, helping businesses make customer-centric data-driven decisions. 

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